EDMUNDSTON, New Brunswick, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Acadian Timber Corp. (“Acadian” or the “Company”) (TSX:ADN) today reported financial and operating results¹ for the three months ended June 27, 2026 (the “second quarter” or “Q2 2026”).

“Our results reflect two trends: ongoing progress towards sustained profitability in Maine due to changes that were made during the quarter, and reduced sales volumes in New Brunswick due to elevated customer roundwood inventories," said Malcolm Cockwell, Interim President and Chief Executive Officer. "We expect that Maine will continue delivering stronger results in 2026 compared to last year, and that New Brunswick will return to normal harvesting levels over the rest of the year."

During the second quarter, Acadian generated sales of $14.6 million compared to $17.1 million in the second quarter of 2025. Acadian generated $1.3 million of net income, $1.3 million of Adjusted EBITDA and $0.2 million of Free Cash Flow during the second quarter. The Board of Directors declared dividends of $5.4 million, or $0.29 per share, to our shareholders.

Acadian’s balance sheet remains solid with $15.0 million of net liquidity as at June 27, 2026, which includes funds available under our credit facilities.

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¹ This news release makes reference to “Adjusted EBITDA”, which Acadian’s management defines as net income before interest, income taxes, fair value adjustments, non-cash cost of sales related to carbon credits, recovery of or impairment of land and roads and depreciation and amortization, and to “Adjusted EBITDA margin”, which is Adjusted EBITDA as a percentage of sales. Reference is also made to “Free Cash Flow”, which Acadian’s management defines as Adjusted EBITDA less interest paid, current income tax expense, capital expenditures excluding acquisitions of timberlands and non-cash expenditures, and mandatory debt repayments, plus net proceeds from the sale of timberlands and other fixed assets (proceeds less gains or losses).Management believes that Adjusted EBITDA, Adjusted EBITDA margin,and Free Cash Floware key performance measures in evaluating Acadian’s operations and are important in enhancing investors’ understanding of the Company’s operating performance. Adjusted EBITDA and Adjusted EBITDA margin are indicative of the underlying profitability of Acadian’s operating segments and are used to evaluate operational performance. Free Cash Flow is used to evaluate Acadian’s ability to generate sustainable cash flows from our operations that are available for dividends, repurchases of common shares, debt reduction, acquisitions, and other capital allocation activities. Reference is also made to “net liquidity” which includes cash and cash equivalents and funds available under credit facilities less amounts reserved to support the minimum cash balance related to long‐term debt. Please refer to the section entitled “Non-IFRS Measures” in Management’s Discussion and Analysis for further details.

Review of Operations

Financial and Operating Highlights

Revenue in Q2 2026 was lower than the prior-year period due to reduced sales volumes, reflecting elevated customer softwood roundwood inventories and weaker softwood pulpwood demand. Sales volumes were also impacted by the scale-back of Maine internal harvesting operations. The weighted average selling price increased 19%, driven by stronger softwood lumber markets, higher fuel surcharges, and longer hauling distances.

Operating costs and expenses decreased $1.7 million from Q2 2025, due to lower sales volumes, operational efficiencies in Maine that began taking effect during Q2 2026, and lower selling and administrative costs, partially offset by higher fuel adjustment costs and longer hauling distances.

Net income for Q2 2026 totaled $1.3 million, or $0.07 per share, compared to $2.7 million or $0.15 per share during the same period last year. Lower operating income and higher income tax expense were partially offset by higher non-cash fair value adjustments.

Results for the six months ended June 27, 2026, reflect steady freehold volumes and pricing during Q1 2026 combined with the operating and market conditions during Q2 2026 that are described above. Revenue was $38.0 million compared to $42.0 million last year, reflecting sales volumes, excluding biomass, that were 12% lower than the same period in 2025, offset by a 5% increase in the weighted average selling price. Operating costs decreased $3.0 million due to lower activity. Net Income totaled $4.8 million, or $0.26 per share, compared to $6.3 million or $0.35 per share during the same period last year.

Segmented Results of Operations

New Brunswick Timberlands

Acadian’s New Brunswick Timberlands business owns and manages 775,000 acres of freehold timberlands in New Brunswick, and provides management services to 1.3 million acres of Crown licensed timberlands in New Brunswick. All harvesting operations are performed by third-party contractors.

Freehold sales were $9.2 million in Q2 2026, compared to $12.3 million last year, reflecting lower sales volumes due to elevated customer roundwood inventories and abundant sawmill residuals in the region. The impact of lower sales volumes was offset by a 19% increase in the weighted average selling price, excluding biomass, driven by stronger softwood lumber markets, higher fuel surcharges, and longer hauling distances. Freehold variable costs per m³ were 22% higher due to higher fuel adjustment costs and longer hauling distances. Timber services activity increased due to timing of activity across quarters. Adjusted EBITDA was $2.1 million for Q2 2026, compared to $4.0 million in Q2 2025.

For the six months ended June 27, 2026, freehold sales were $27.0 million, compared to $30.1 million last year, reflecting lower sales volumes during Q2 2026. The impact of lower sales volumes was offset by a 7% increase in the weighted average selling price, excluding biomass, for the reasons described above. Freehold variable costs per m³ were 12% higher, also for the reasons described above. Timber services activity was $2.5 million lower year over year as a result of a change in customer mix which redirected harvesting from Crown licensed timberlands to our freehold operations. Adjusted EBITDA was $7.9 million, compared to $9.9 million in the same period of 2025.

Maine Timberlands

Acadian’s Maine Timberlands business owns and manages 300,000 acres of freehold timberlands in Maine. Prior to January 1, 2025, all harvesting operations in Maine Timberlands were performed by third-party contractors. During Q1 2025, Acadian established its own internal harvesting operations. The transition and rationale for the relevant transactions were described in Acadian’s Q1 2025 interim report dated May 7, 2025.

Freehold sales were $1.9 million in Q2 2026, compared to $2.3 million last year, reflecting lower sales volumes due to reduced harvesting activity, as internal harvesting operations were scaled down to focus on improving efficiency and reducing operating costs. The impact of lower volumes was offset by a 16% increase in the weighted average selling price, excluding biomass, in U.S. dollar terms, due to a higher-value product mix, increased fuel surcharges, and longer hauling distances. Timber services activity increased by $0.3 million. Freehold cost of sales per m³ were 7% lower than Q2 2025, with the impacts of operational efficiencies partially offset by higher fuel costs and longer hauling distances. Adjusted EBITDA was $(0.4) million compared to $(0.9) million in Q2 2025.

For the six months ended June 27, 2026, freehold sales were $5.1 million, compared to $4.8 million last year, reflecting higher sales volumes. The weighted average selling price, excluding biomass, in U.S. dollar terms was 5% lower due to a higher proportion of stumpage sales and roadside sales that occurred during Q1 2026. Freehold cost of sales per m³ were 21% lower due to higher volumes and reduced fixed costs. Timber services activity was $1.2 million higher than the first six months of 2025, as the activity on neighbouring landowners increased. Adjusted EBITDA was $0.1 million compared to $(1.6) million.

Other Businesses

Environmental Solutions leverages the ecological functions of Acadian’s land and technical expertise of its team to address pressing environmental challenges, such as climate change. During Q2 2026 and Q2 2025, no carbon credits were sold. Acadian is in the process of registering additional carbon credits for sale, which is expected to occur in the second half of 2026.

Real Estate is an emerging business, which develops new sources of revenue from Acadian’s land through recreational activities and leases, commercial leases, and land sales. The financial performance of Real Estate is currently included in the reported results for New Brunswick Timberlands and Maine Timberlands. As these activities are further developed, Real Estate may be reported as its own segment.

Detailed Segmented Results

The table below summarizes operating and financial results for New Brunswick Timberlands:

The table below summarizes operating and financial results for Maine Timberlands:

Outlook

Sufficient contractor availability in New Brunswick is expected to continue through 2026. Due to changes to the scale and structure of internal harvesting operations in Maine that were made during Q2 2026, we expect to continue progressing towards our targeted production levels as well as cost structure over the course of the year.

Demand for Acadian’s products is mainly driven by regional supply dynamics. The elevated customer roundwood inventory levels that limited deliveries in New Brunswick during Q2 2026 have since normalized. Near-term sawlog demand is expected to remain stable, but pricing may remain challenged until end-use markets improve. Demand and pricing for pulpwood in both New Brunswick and Maine is expected to remain at reduced levels until existing customers increase their production and new facilities that consume pulpwood as well as biomass are commissioned.

Looking through to end-use markets, most macroeconomic indicators are positive. The consensus forecast for U.S. housing starts is steady at approximately 1.4 million starts in 2026. Furthermore, temporary and permanent curtailments of forest products facilities in other regions of North America are expected to support the demand and pricing conditions for Acadian’s customers in New Brunswick and Maine. These trends align with our conviction in the stability of the northeastern forestry sector.

However, tariffs and duties continue impacting most of our customers. Higher fuel costs, which took effect in early-Q2 and which we are able to partially recover from our customers, are also impacting our customers. While we have not observed significant curtailments among our customers so far this year, these factors are expected to continue limiting the extent to which our customers utilize the full capacity of their manufacturing facilities.

With respect to voluntary carbon credits, demand and pricing are expected to remain stable. Issuance of the next tranche of carbon credits from Acadian’s current project has been delayed due to the transition to ACR’s updated Improved Forest Management protocol. The registration of additional carbon credits is anticipated in the second half of 2026, and the updated protocol is expected to improve the marketability of the resulting carbon credits. While Acadian is evaluating opportunities to develop additional projects, our focus is on the existing carbon credit project in Maine.

Quarterly Dividend

Acadian is pleased to announce a dividend of $0.29 per share, payable on October 15, 2026 to shareholders of record September 30, 2026.

Acadian Timber Corp. (“Acadian”) is one of the largest timberland owners in Eastern Canada and the Northeastern U.S. We own and manage 775,000 acres of freehold timberlands in New Brunswick and approximately 300,000 acres of freehold timberlands in Maine. Acadian also provides timber services relating to 1.3 million acres of Crown licensed timberlands in New Brunswick.

Our primary business is the production of softwood and hardwood sawlogs, pulpwood, and biomass by-products, sold to approximately 85 regional customers. Acadian also generates income through other operations, including Real Estate and Environmental Solutions.

Acadian’s business strategy is to maximize cash flows from its existing timberland assets through sustainable forest management and other land use activities. We aim to grow our business by acquiring additional timberland assets at value and actively manage those assets to drive improved performance.

Acadian’s shares are listed for trading on the Toronto Stock Exchange under the symbol ADN.

For further information, please visit our website at www.acadiantimber.com or contact:

Susan Wood
Chief Financial Officer
Tel: 506-737-2345 
Email: ir@acadiantimber.com

Cautionary Statement Regarding Forward-Looking Information and Statements

This News Release contains forward-looking information and statements within the meaning of applicable Canadian securities laws that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Acadian Timber Corp. and its subsidiaries (collectively, “Acadian”), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking information is included in this News Release and includes statements made in the section entitled “Outlook” and without limitation other statements regarding management’s beliefs, intentions, results, performance, goals, achievements, future events, plans and objectives, business strategy, growth strategy and prospects, access to capital, liquidity and trading volumes, dividends, taxes, capital expenditures, projected costs, market trends and similar statements concerning anticipated future events, results, achievements, circumstances, performance or expectations that are not historical facts. All forward-looking statements in this News Release are qualified by these cautionary statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Actual results may vary. These forward-looking statements include, but are not limited to:

• Expectations regarding the number and timing of carbon credits that will be successfully registered and available for sale. Actual credit issuances will be adjusted each reporting period based on actual harvesting, natural disturbances and other factors, as well as periodic updating for inventory and verification activities.
• Expectations regarding product demand, pricing and end use markets, including expectations for U.S. housing starts, which may be impacted by changes in interest rates, U.S. population demographics and the inventory of homes for sale. Expectations regarding product demand and pricing are based on anticipated market conditions, anticipated regional inventory levels of key customers, and the economic situation of key customers. Estimates for U.S. housing starts are based on forecasts published by major financial institutions.
• Expectations regarding future production volumes and costs which may be impacted by operational efficiency, the regional supply of skilled operators, product demand, sales pricing, fuel price volatility, and end use markets.
• Expectations regarding the impacts of escalated duties on softwood lumber and tariffs or potential tariffs levied on U.S. imports from Canada, which may include direct impacts related to changes to the price of and demand for Acadian’s products originating in Canada as well as the U.S., and indirect impacts associated with changes in the price of and demand for the products of Acadian’s key customers and the greater economy.
• Expectations regarding future contractor availability, which may be impacted by regional supply of trained contractors and changes in the demographics of the available workforce.
  

Other risks and factors are discussed in Management’s Discussion and Analysis for the second quarter of 2026 dated August 5, 2026, and the Annual Information Form and Management Information Circular dated March 27, 2026, and other filings of Acadian made with securities regulatory authorities, which are available on SEDAR+ at www.sedarplus.ca. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to Acadian. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive. Although the forward-looking statements contained in this News Release are based upon what management believes are reasonable assumptions, Acadian cannot assure readers that actual results will be consistent with these forward-looking statements. The forward-looking statements in this News Release are made as of the date of this News Release based on information currently available to management and should not be relied upon as representing Acadian’s views as of any date subsequent to the date of this News Release. Acadian assumes no obligation to update or revise these forward-looking statements to reflect new information, events, circumstances or otherwise, except as may be required by applicable law.

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